Central Provident Fund (Minimum Sum Scheme) (Amendment) Regulations 2014

No. S 443

Central Provident Fund Act

(CHAPTER 36)

Central Provident Fund
(Minimum Sum Scheme)
(Amendment) Regulations 2014

In exercise of the powers conferred by section 77(1) of the Central Provident Fund Act, the Minister for Manpower, after consulting with the Central Provident Fund Board, hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Central Provident Fund (Minimum Sum Scheme) (Amendment) Regulations 2014 and shall come into operation on 1st July 2014.

Amendment of regulation 2

2. Regulation 2(2) of the Central Provident Fund (Minimum Sum Scheme) Regulations (Rg 16) (referred to in these Regulations as the principal Regulations) is amended by deleting the words “, 11(4) and (5)”.

New regulation 6

3. The principal Regulations are amended by inserting, immediately after regulation 5, the following regulation:

“Minimum sum for member who is receiving or will receive pension, annuity or other benefit

6.—(1) If the Board is satisfied that a member is receiving or will receive such pension, annuity or other benefit as may be approved by the Board which will provide the member with a minimum monthly income of an amount that is not less in value than the amount specified in regulation 14(1), the member need not comply with section 15(6)(a) of the Act by reason of section 15(8)(e) of the Act.

(2) If the Board is satisfied that a member is receiving or will receive such pension, annuity or other benefit as may be approved by the Board which will provide the member with a minimum monthly income of an amount that is less in value than the amount specified in regulation 14(1), the minimum sum applicable to the member shall be the required retention amount less the sum of any amounts which the member has been paid under regulation 12(1), (2) or (3), 13 or 13B before the determination of the required retention amount.

(3) For the purposes of paragraph (2), the required retention amount shall be computed in accordance with the following formula:

where I

is the amount specified in regulation 14(1);

is the minimum sum applicable to the member; and

is the minimum monthly income that the pension, annuity or other benefit provides or will provide to the member.

(4) For the purposes of this regulation, the Board —

(a)	shall determine the minimum monthly income provided or to be provided to a member by that member’s pension, annuity or other benefit from any information it may have; and
(b)	may, if it has information of the fixed minimum monthly income provided or to be provided by that member’s pension, annuity or other benefit, take that fixed minimum monthly income to be the minimum monthly income provided or to be provided to the member by that pension, annuity or other benefit.”.

Amendment of regulation 11

4. Regulation 11 of the principal Regulations is amended by deleting paragraphs (2) to (8) and substituting the following paragraph:

“(2) Any payment from the approved annuity shall be determined in accordance with the terms and conditions of the approved annuity.”.

Amendment of regulation 12

5. Regulation 12 of the principal Regulations is amended —

(a)	by deleting “(6)” in paragraph (1) and substituting “(4)”;
(b)	by deleting the words “and 13” in paragraph (1) and substituting the words “, 13, 13C and 13D”;
(c)	by deleting the words “paragraphs (4) and (6)” in paragraph (3) and substituting the words “paragraph (4) and regulation 13D(2)”;
(d)	by deleting the words “paragraphs (5) and (6)” in paragraph (4) and substituting the words “regulation 13D”; and
(e)	by deleting paragraphs (5) and (6).

Amendment of regulation 12A

6. Regulation 12A of the principal Regulations is amended —

(a)

by deleting paragraphs (1) and (2) and substituting the following paragraphs:

“(1) This regulation applies where 2 members of the Fund who are parties to a marriage have set aside jointly an amount which is 1.5 times the minimum sum in accordance with regulation 4(2), and that amount is retained in their respective retirement accounts under section 15(6C)(b)(i) of the Act.

(2) Subject to paragraph (4) and regulation 13D, where 2 members of the Fund who are parties to a marriage have set aside jointly an amount which is 1.5 times the minimum sum in accordance with regulation 4(2), the amount which each member may withdraw monthly from the amount retained in their respective retirement accounts shall be $297.”;

(b)

by deleting the words “paragraphs (4), (5) and (6)” in paragraph (3) and substituting the words “paragraph (4) and regulation 13D”;

(c)

by deleting the words “deposited with an approved bank or” in paragraphs (3) and (4);

(d)

by deleting the words “paragraphs (5) and (6)” in paragraph (4) and substituting the words “regulation 13D”;

(e)

by deleting paragraphs (5) and (6); and

(f)

by deleting the words “deposited with approved bank or” in the regulation heading.

Amendment of regulation 13

7. Regulation 13 of the principal Regulations is amended —

(a)

by deleting the words “an amount that is equal to the difference between —” in paragraph (1) and substituting the words “a sum of $297.”;

(b)

by deleting sub-paragraphs (a) and (b) of paragraph (1);

(c)

by deleting the words “the higher of the following:” in paragraph (2) and substituting “$297.”;

(d)

by deleting sub-paragraphs (a) and (b) of paragraph (2); and

(e)

by inserting, immediately after paragraph (2), the following paragraphs:

“(3) Where a member is receiving or will receive a pension, annuity or other benefit which provides him with a minimum monthly income for life and he has any amount standing to his credit in his retirement account —

(a)	if the minimum monthly income from the pension, annuity or other benefit is equal to or more than the amount specified in regulation 14(1), the member may be paid, in a lump sum, the amount standing to his credit in his retirement account; and
(b)	if the minimum monthly income from the pension, annuity or other benefit is less than the amount specified in regulation 14(1), the member may be paid, in a lump sum, the difference between the amount standing to his credit in his retirement account and the required retention amount referred to regulation 6(3).

(4) For the purposes of this regulation, the Board —

(a)	shall determine the minimum monthly income provided or to be provided to a member by that member’s pension, annuity or other benefit from any information it may have; and
(b)	may, if it has information of the fixed minimum monthly income provided or to be provided by that member’s pension, annuity or other benefit, take that fixed minimum monthly income to be the minimum monthly income provided or to be provided to the member by that pension, annuity or other benefit.”.

Amendment of regulation 13B

8. Regulation 13B of the principal Regulations is amended —

(a)	by deleting the words “paragraph (5)” in paragraph (1) and substituting the words “regulation 13C”; and
(b)	by deleting paragraph (5).

New regulations 13C and 13D

9. The principal Regulations are amended by inserting, immediately after regulation 13B, the following regulations:

“Payment of lower monthly income under regulation 12(1) or (3), 12A, 13 or 13B

13C.—(1) Despite regulation 12(1) or (3), 12A, 13 or 13B, a member who is entitled to receive a monthly income under any of those provisions may apply to the Board to be paid a monthly income, specified in his application, of an amount less than the monthly income provided by that provision.

(2) The Board may approve an application made under paragraph (1) on such terms and conditions as the Board may impose.

Payment of monthly income where balance in retirement account is low

13D.—(1) Subject to paragraph (2), where any amount is retained in a member’s retirement account under section 15(6C)(b)(i) of the Act, and the balance of the amount so retained (including any interest accruing thereon) is less than $20, the Board may —

(a)	if the member has applied for the monthly income which he may be paid under regulation 12(1), 12A, 13, 13B or 13C to be paid into his account with a bank by inter-bank GIRO, pay the member the entire balance in that manner; or
(b)	retain the entire balance in the member’s retirement account until there is a balance of not less than $20 in the amount so retained (including any interest accruing thereon).

(2) Where any payment of the monthly income which a member may be paid under regulation 12(1) or (3), 12A, 13, 13B or 13C results in a balance of $100 or less in the amount retained in his retirement account under section 15(6C)(b)(i) of the Act (including any interest accruing thereon), the Board may permit the entire balance to be paid together with the monthly income.”.

Amendment of regulation 14

10. Regulation 14 of the principal Regulations is amended —

(a)	by deleting the words “, 11(2), (3), (5) and (6)” in paragraph (1); and
(b)	by deleting paragraph (2).

[G.N. Nos. S 503/2007; S 707/2007; S 396/2009; S 341/2010; S 263/2012; S 708/2012; S 481/2013; S 850/2013]

Made this 30th day of June 2014.

LOH KHUM YEAN

Permanent Secretary,
Ministry of Manpower,
Singapore.

[S5.2/85 V34.; AG/LLRD/SL/36/2010/15 Vol. 2]

(To be presented to Parliament under section 78(2) of the Central Provident Fund Act).

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